Question
In: Accounting
a statement of cash flows can be prepared by using the information in the accrual based...
a statement of cash flows can be prepared by using the information in the accrual based income statement and balance sheet by with the effect of ______ - cash transaction removed.
Solutions
Expert Solution
A statement of cash flows can be prepared by using the information in the accrual based income statement and balance sheet by with the effect of Non - cash transaction removed.
A statement of cash flows shows the inflows and outflows of cash during the period by classifying the inflows and outflows into operating, investing and financing activities. From the income statement, all non cash transactions are removed to calculate the cash flows from operating activities. And from the Blanace sheet,all non cash transactions are removed to calculate the cash flows from investing and financing activities.
ekkarill92 answered 2 years agoRelated Solutions
1. Is the cash flow statement prepared using accrual accounting or cash accounting? 2. What information...
1. Is the cash flow statement prepared using accrual accounting
or cash accounting?
2. What information is included on the cash flow statement that
is not included on the income statement or balance sheet?
Distinguish between cash flow, as reported on the statement of cash flows, and accrual-based income, as...
Distinguish
between cash flow, as reported on the statement of cash flows, and
accrual-based income, as reported on the income statement; discuss
the importance of cash flows to investors, relative to
accrual-based income
The income statement provides accrual based earnings and the cash flow statement provides cash flows from...
The income statement provides accrual based earnings and the
cash flow statement provides cash flows from operations. Which of
these measures of firm performance is more important to investors,
auditors, and fraud investigators? Is it possible that one of these
measures can provide clues about manipulation of the other? What
are some red flags that could signal manipulation of income from
operations or cash flows from operating activities?
Based on the following information, prepare the statement of cash flows using the indirect method.  
Based on the following information, prepare the statement of
cash flows using the indirect method.
New Guy Company
Balance Sheet
2019
2018
Change
Current assets:
Cash
$108,000
$131,500
($23,500)
Accounts
receivable
102,000
71,000
31,000
Inventory
101,000
70,000
31,000
Marketable
securities
4,000
28,000
(24,000)
Prepaid
expenses
20,000
26,000
(6,000)
Long-term assets
Plant & equipment (net)
296,000
175,000
121,000
Land
52,000
91,000
(39,000)
Patent
53,000
53,000
0
Total
Assets
736,000
645,500
Current liabilities:
Accounts
payable
41,000
69,000
(28,000)...
Based on the following information, prepare the statement of cash flows using the indirect method.  
Based on the following information, prepare the statement of
cash flows using the indirect method.
New Guy Company
Balance Sheet
2019
2018
Change
Current assets:
Cash
$108,000
$131,500
($23,500)
Accounts
receivable
102,000
71,000
31,000
Inventory
101,000
70,000
31,000
Marketable
securities
4,000
28,000
(24,000)
Prepaid
expenses
20,000
26,000
(6,000)
Long-term assets
Plant & equipment
(net)
296,000
175,000
121,000
Land
52,000
91,000
(39,000)
Patent
53,000
53,000
0
Total
Assets
736,000
645,500
Current liabilities:
Accounts
payable
41,000
69,000
(28,000)...
Based on the following information, prepare the statement of cash flows using the indirect method.  
Based on the following information, prepare the statement of
cash flows using the indirect method.
New Guy Company
Balance Sheet
2019
2018
Change
Current assets:
Cash
$108,000
$121,500
($13,500)
Accounts
receivable
102,000
141,000
(39,000)
Inventory
101,000
60,000
41,000
Marketable
securities
4,000
18,000
(14,000)
Prepaid
expenses
20,000
36,000
(16,000)
Long-term assets
Plant & equipment
(net)
296,000
185,000
111,000
Land
52,000
31,000
21,000
Patent
53,000
53,000
0
Total
Assets
736,000
645,500
Current liabilities:
Accounts
payable
41,000
34,000
7,000
Interest...
Problem #1 Statement of Cash Flows The following Statement of Cash Flows was prepared for the...
Problem #1 Statement of Cash Flows
The following Statement of Cash Flows was prepared for the
Baines Corporation.
Walker Corporation
Statement of Sources and Uses of Cash
Year Ended December 31, 2017
Sources of cash
Net income $111,000
Depreciation and depletion
70,000
Increase in long-term debt 179,000
Changes in current receivables and inventories,
less current liabilities 14,000
$374,000
Uses of cash
Cash dividends $ 60,000
Expenditure for property, plant, and equipment 214,000...
How is the statement of cash flows prepared? What information is used when preparing the statement...
How is the statement of cash flows prepared? What information is
used when preparing the statement of cash flows? Cite any
references used. Participate in follow-up discussion by reviewing
your classmates' posts, adding additional information, asking
questions, or responding to follow-up questions posed by your
instructor.
How is the statement of cash flows prepared? What information is used when preparing the statement...
How is the statement of cash flows prepared? What information is
used when preparing the statement of cash flows?
Assuming a statement of cash flows is prepared using the indirect method, indicate the reporting of...
Assuming a statement of cash flows is prepared using the
indirect method, indicate the reporting of the transactions and
events listed below by major categories on the statement. Use the
following code letters to indicate the appropriate category under
which the item would appear on the statement of cash flows.
A Add to Operating activities
B Deduct from Operating activities
C Add to Cash flows from Investing activities
D Deduct from Cash flows from Investing
activities
E. Add to Cash...
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